KNOT Offshore Partners LP Announces Termination of Discussions on Proposed Buyout Offer From Knutsen NYK Offshore Tankers AS
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Shuttle tankers are specialized ships that pick up crude oil from offshore production sites and carry it to onshore terminals or larger tankers, like a delivery truck that shuttles loads from a remote factory to a distribution center. They matter to investors because their income comes from long-term charter contracts and utilization depends on offshore oil production and transportation demand, so changes in drilling activity, oil prices, or regulation can affect revenue and asset value.
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A master limited partnership is a type of business structure that combines features of a corporation and a partnership, allowing it to raise money from investors while passing profits directly to them. Think of it as a shared ownership group that offers regular income, making it attractive to investors seeking steady cash flow. This structure is often used by companies involved in natural resources or energy, where consistent revenue is common.
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A sale-and-leaseback is when a company sells an asset it uses—often a building or equipment—to another party and immediately rents it back so it can keep using the asset. Think of selling your house to free up cash and then continuing to live there as a tenant; it provides liquidity now but creates a new ongoing rent expense. Investors watch these deals because they change a company's cash position, recurring costs and ownership of assets, which can affect cash flow, leverage and long-term profitability.
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ABERDEEN, Scotland--(BUSINESS WIRE)--
KNOT Offshore Partners LP (NYSE:KNOP) (“The Partnership”) announced today that discussions regarding the unsolicited non-binding proposal received by the Partnership on October 31, 2025 from Knutsen NYK Offshore Tankers AS (“KNOT”), pursuant to which KNOT proposed to acquire through a wholly-owned subsidiary all publicly held common units of the Partnership in exchange for cash (the “KNOT Offer”), have been terminated.
The Conflicts Committee of the Partnership’s Board, which is comprised of only non-KNOT-affiliated directors, retained independent financial and legal advisors to assist it in evaluating the KNOT Offer.
The Conflicts Committee and its independent advisors reviewed the KNOT Offer and had several discussions with KNOT over the last few months regarding the potential transaction.
Following such discussions, the parties have determined that they will not be able to reach an agreement and have therefore terminated discussions regarding the KNOT Offer.
About KNOT Offshore Partners LP
KNOT Offshore Partners LP owns, operates and acquires shuttle tankers primarily under long-term charters in the offshore oil production regions of Brazil and the North Sea.
KNOT Offshore Partners LP is structured as a publicly traded master limited partnership but is classified as a corporation for U.S. federal income tax purposes, and thus issues a Form 1099 to its unitholders, rather than a Form K-1. KNOT Offshore Partners LP’s common units trade on the New York Stock Exchange under the symbol “KNOP”.
